Your bookkeeper says “talk to your accountant.” Your accountant says “your books are a mess.” You are caught in the middle.
You are not alone. Most business owners confuse bookkeeping and accounting — and they end up hiring the wrong person for the wrong job.
Here is the simple truth:
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Bookkeeping — Recording daily transactions
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Accounting — Analyzing those transactions, filing taxes, and providing strategy
Bookkeeping tells you what happened. Accounting tells you what it means and what to do next.
Most businesses need both. But you need to know the difference so you can hire the right person.
Bookkeeping vs Accounting — The Simple Difference
| Aspect | Bookkeeping | Accounting |
|---|---|---|
| What they do | Record daily transactions, reconcile bank accounts, categorize expenses | Analyze financial data, file taxes, provide strategic advice |
| When | Ongoing — daily, weekly, or monthly | Periodic — monthly, quarterly, or annually |
| Focus | Recording the past | Understanding the past + planning the future |
| Key tasks | Bank reconciliation, data entry, payroll processing, invoice tracking | Tax filing, financial analysis, forecasting, budgeting, CRA communication |
| Education | Certificate or diploma | CPA designation |
| Cost | $597–$1,247/month | $1,500–$5,000+/year for filing; $1,500–$5,000+/year for planning |
Which One Do You Need?
Use this decision framework:
| Your Situation | What You Need |
|---|---|
| You have 50–500 monthly transactions and need clean books | Bookkeeping |
| You need monthly financial statements and payroll | Bookkeeping + Controller |
| You need tax filing (T1 or T2) | Accounting (Tax Filing) |
| You need tax planning (before year-end) | Accounting (Tax Planning) |
| You need cash flow forecasting and banking relationships | Fractional CFO |
Most businesses need both bookkeeping and accounting:
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Bookkeeping keeps your records clean
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Accounting files your taxes using those clean records
Key point: Your accountant should not be doing data entry. If your accountant is spending hours categorizing transactions, you are paying $200–$400/hour for work a bookkeeper would do for $597–$1,247/month.
Bookkeeping Services We Offer
Monthly bookkeeping includes:
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Bank and credit card reconciliation
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Transaction categorization
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Accounts payable management
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Accounts receivable tracking
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Monthly financial statements
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Secure document portal
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Year-end ready package for your accountant
Bookkeeping pricing starts at $597/month based on transaction volume.
For more detail, see our bookkeeping in Burnaby and bookkeeping in Richmond pages.
Accounting Services We Offer
Tax filing:
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T1 personal tax returns ($300–$800)
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T2 corporate tax returns ($1,500–$3,500)
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HST/GST filing
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CRA instalment planning
Tax planning:
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Year-end strategy reviews
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Quarterly planning sessions
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SR&ED and other BC credits
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CRA audit support
Tax filing + planning pricing starts at $2,500–$7,000+/year.
Freelance vs Agency vs Fractional — What Is Right for Your Business?
Many business owners are confused about the different types of bookkeeping support. Here is the breakdown:
| Provider Type | Cost Range | Pros | Cons | Best For |
|---|---|---|---|---|
| Freelance bookkeeper | $30–$60/hour | Low hourly rate, flexible | No backup if sick/vacation, no quality oversight, may lack credentials | Very small businesses (<50 transactions/month) |
| Bookkeeping agency (like ARV Consultants) | $600–$1,500/month | Team backup, credentialed professionals, quality control, works with your accountant | Higher monthly minimum | Most small to medium businesses |
| Fractional CFO | $3,200–$8,500/month | Strategic leadership, forecasting, banking relationships | Overkill for basic bookkeeping | Businesses needing strategy, not just transaction recording |
Our recommendation for most businesses: Start with agency bookkeeping (monthly flat fee). Upgrade to fractional CFO when you hit $500k+ revenue and need strategic guidance.
For businesses ready for strategic financial leadership, see our fractional CFO services.
What Happens If You Skip Professional Bookkeeping?
The cost of doing nothing is higher than the monthly fee.
| Problem | Typical Cost |
|---|---|
| Missed deductions at tax time | $2,000–$10,000+ per year |
| CRA late filing penalties | 5% of balance + 1% per month |
| CRA interest on underpaid instalments | 8% (2026 rate) |
| Accountant cleanup fees | $200–$400/hour, 10–40 hours = $2,000–$16,000 |
| Missed GST/HST input tax credits | 5% GST + 7% PST on eligible purchases |
| Cash flow surprises | $500–$5,000+ per incident |
Real example: No professional bookkeeping for 2 years. Accountant charged $7,500 to clean up 24 months of transactions. Plus missed $12,000 in GST/HST credits. Total cost: $19,500.
We Work with Your Existing Accountant
You do not need to switch accountants. We integrate with whoever prepares your taxes.
How it works:
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You authorize us to share your books with your accountant
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We provide monthly financial statements and year-end ready packages
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Your accountant files your taxes using organized, accurate records
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We answer any follow-up questions from your accountant
No drama. No forced switches.
When to Upgrade from Bookkeeping to CFO
Bookkeeping tells you what happened. A CFO tells you what will happen — and how to make it better.
Upgrade to a fractional CFO when:
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Your revenue exceeds $500,000
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You need cash flow forecasting (not just historical reporting)
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Your bank has asked for better financials
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You are making major decisions without a financial model
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You need tax planning (not just filing)
For strategic financial leadership, see our fractional CFO services.
Your Next Step
Bookkeeping records what happened. Accounting tells you what it means. Most businesses need both.
Here is how to start:
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Book a free 15-minute consultation — we assess your current situation
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We recommend what you need — bookkeeping, accounting, or both
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You get a specific quote — no surprises
Rajeev Kumar, Director at ARV Consultants. 18 years experience. Named one of the world’s Top 10 CFOs by CEO Insights Magazine (2024, 2023, 2022).
